Hybrid Entrepreneurship

Management Science, 56(2): 253-269, February 2010

Posted: 30 Apr 2011 Last revised: 14 Jul 2013

See all articles by Timothy B. Folta

Timothy B. Folta

Purdue University - Krannert School of Management

Frédéric Delmar

Lund University School of Economics and Management; EM Lyon (Ecole de Management de Lyon); Research Institute of Industrial Economics (IFN)

Karl Wennberg

Linkoping University - Institute for Analytical Sociology (IAS)

Date Written: 2010

Abstract

In contrast to previous efforts to model the individual’s movement from wage work into entrepreneurship, we consider that individuals might transition incrementally by retaining their wage job while entering into self-employment. We show that these hybrid entrepreneurs represent a significant share of all entrepreneurial activity. Theoretical arguments are proposed to suggest why hybrid entrants are distinct from self-employment entrants, and why hybrid entry may facilitate subsequent entry into full self-employment. We demonstrate that there are significant theoretical and empirical consequences for this group and our understanding of self-employment entry and labor market dynamics. Using matched employee-employer data over eight years, we test the model on a population of Swedish wage earners in the knowledge-intensive sector

Keywords: entrepreneurship, self employment, labor markets

JEL Classification: J23, M13

Suggested Citation

Folta, Timothy B. and Delmar, Frédéric and Wennberg, Karl, Hybrid Entrepreneurship (2010). Management Science, 56(2): 253-269, February 2010. Available at SSRN: https://ssrn.com/abstract=1477325

Timothy B. Folta (Contact Author)

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States
765-494-9252 (Phone)

Frédéric Delmar

Lund University School of Economics and Management ( email )

P.O Box 7080
Lund
Sweden

EM Lyon (Ecole de Management de Lyon) ( email )

23 Avenue Guy de Collongue
Lyon, Ecully 69134
France
+33 (0)4 78 33 70 18 (Phone)

HOME PAGE: http://www.em-lyon.com/france/professeurs/delmar/index.aspx

Research Institute of Industrial Economics (IFN)

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Karl Wennberg

Linkoping University - Institute for Analytical Sociology (IAS) ( email )

Norrköping, 601 74
Sweden

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